Is BRK-B (Berkshire Hathaway Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, BRK-B is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 1 of 4 compliance screens. Berkshire Hathaway Inc.'s core business activity was found to be non-compliant.

Berkshire Hathaway is a diversified holding company most famous for its massive insurance operations, including GEICO, General Re, and Berkshire Hathaway Reinsurance Group. Beyond insurance, it owns major subsidiaries like BNSF Railway and Berkshire Hathaway Energy, alongside a vast portfolio of manufacturing and retail businesses ranging from Duracell to Dairy Queen. It is widely regarded as one of the most successful conglomerates in history, driven by the capital allocation strategies of Warren Buffett. For Muslim investors, however, BRK-B presents a significant compliance issue. The stock is classified as Not Halal (Haram) primarily because it fails the Business Activity screen. Although it passes all financial ratio tests—including debt and liquidity thresholds—the company's heavy reliance on conventional insurance underwriting involves elements of riba (interest) and gharar (excessive uncertainty), which are strictly prohibited in Islamic finance. From a financial perspective, the company is incredibly robust, boasting a debt-to-market cap ratio of just 13.5% and substantial cash and securities holdings at 31.4% of its market value. While these metrics indicate a financially healthy balance sheet that avoids excessive leverage, the source of this capital—often the 'float' generated from insurance premiums invested in interest-bearing instruments—renders the stock non-compliant . Investors should note that while Berkshire owns permissible subsidiaries like BNSF Railway or See's Candies, you cannot separate these from the parent company's problematic core. Unless the company fundamentally shifts away from conventional insurance and interest -based financial services, BRK-B remains off-limits for strict Shariah-compliant portfolios. Berkshire Hathaway Inc. operates in the Financial Services sector under the Insurance - Diversified industry and is headquartered in Omaha, NE, US. The company is led by CEO Gregory Edward Abel and employs approximately 392,400 people.

BRK-B was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. BRK-B passed 3 of these 4 screens.

BRK-B was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.